WASHINGTON – Senate Republicans rejected a measure on June 24 aimed at overturning the Trump administration’s regulations setting new federal student loan caps for graduate programs. The legislation, proposed by Democrats, failed along party lines ahead of the July 1 deadline that would enforce borrowing limits nationwide.

The changes, part of the “One Big, Beautiful Bill” Act and finalized by the U.S. Department of Education, have created significant shifts in the college financial aid system. Despite criticism from congressional Republicans, some lawmakers are concerned about the implications, especially for graduate nursing students, leading to potential health care workforce shortages.

The Education Department was tasked with deciding which fields could have an aggregate borrowing limit of $200,000, with nursing ultimately not included. This law ends the Grad PLUS lending program and imposes restrictions on Parent PLUS loans, leaving undergraduate lending mostly unchanged.

Senator Jeff Merkley, D-Oregon, presented a proposal to block the new student loan rules. He characterized the Trump administration’s approach as a “gift to predatory lenders,” driving borrowers towards private markets. “Contrary to claims that schools will lower tuition if loans are unavailable, costs remain essential due to infrastructure, faculty salaries, and existing financial commitments,” Merkley stated.

Senator Bill Cassidy, R-Louisiana, chair of the Senate’s education committee, disagreed, suggesting the rules might force schools to cut costs, reverting to what he termed the “Biden administration’s student loan disaster.” Despite understanding the impact on graduate health care programs, Cassidy expressed concerns while emphasizing a need for targeted discussions on these matters.